Tennessee Valley Authority

TVA's operating revenues were $2.8 billion and $3.0 billion for the three months ended December 31, 2023 and 2022, respectively. Operating revenues decreased for the three months ended December 31, 2023, as compared to the same period of the prior year, primarily as a result of lower fuel rates and lower sales volume, partially offset by higher effective base rates. The lower fuel rates were primarily due to lower natural gas and purchased power prices. The decreased sales volume was driven by overall milder weather during the first quarter of 2024 as compared to the first quarter of 2023. Effective base rates were higher primarily due to the TVA Board action to increase rates 4.5 percent beginning in 2024 and the pandemic credits ending September 30, 2023.

Total operating expenses decreased $241 million for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022 primarily due to a decrease in fuel and purchased power expense. Fuel and purchased power expense decreased $251 million for the three months ended December 31, 2023, as compared to the same period of the prior year, primarily due to lower natural gas and purchased power prices.

Pre-commercial plant operations began on Paradise Combustion Turbine Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. In addition, the first license renewal application was submitted to the Nuclear Regulatory Commission in January 2024 for the three units at Browns Ferry Nuclear Plant following the completion of a Supplemental Environmental Impact Statement.

On January 17, 2024, TVA reached a preliminary all-time record high peak power demand of approximately 34,524 megawatts ("MW"). This estimated peak was over 1,000 MW greater than TVA's previous all-time peak and nearly 1,100 MW greater than TVA's peak power demand during Winter Storm Elliott in December 2022. In addition, TVA reached a preliminary second highest all-time record high peak power demand of approximately 34,284 MW on January 21, 2024.